Mortgages are loans used to purchase real estate and are available in many forms. The most common types are conventional, FHA and VA. Other types are secondary, reverse and balloon mortgages. These loans often involve the use of rebate points.


Conventional loans are the most common type of mortgage used in the country today. A traditional mortgage is a loan between a borrower and a lender that is not insured or guaranteed by the government.  To get more details about real estate mortgage loans, you can visit this site

Traditional mortgages are privately insured through private mortgage insurance or are not insured at all. Traditional loan policies typically require a minimum down payment of five percent for property occupied by the owner (not rented); higher for yield/rent properties. Mortgages with a down payment of less than 20% usually require Personal Mortgage Insurance (PMI). Most conventional mortgages have terms of 15 to 30 years and can be either a fixed rate or an adjustable rate.

A fixed rate mortgage means that the interest rate is permanently "fixed" at the rate that was available when the mortgage was created. The interest rate never changes no matter what interest rate you make later. Fixed-rate loans offer a rate of principal and interest payments that borrowers can rely on and are especially attractive when interest rates are low.


FHA loans are insured by the Federal Housing Administration, which is a division of HUD. This program was created in 1934 to boost the housing market during the Depression. FHA loans are insured by the government against default, but the mortgages themselves come from large private lenders.

FHA loans are often offered by the same lenders that offer traditional loans. The FHA loan limit is limited, and the maximum loan amount varies by geographic area. Expensive housing markets tend to have higher maximum loan amounts than lower-cost areas.